CBDCs won’t fix failed monetary policy, say Stablecoin Saga executives

As countries around the world immerse themselves in central bank digital currencies (CBDC), many in the crypto industry Bitcoin Compass are eagerly awaiting what this might mean for adoption and even lucrative partnerships to develop such tokens. However, at least some commentators have noted that national CBDCs are likely to disappoint those who seek an update in monetary policy.

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„A change in the packaging“
Speaking to Cointelegraph, Ido Sadeh Man and Barry Topf, respectively the founder and chief economist of, Saga, a global project for stable currencies, warned against the wave of optimism surrounding the CBDCs.

„It’s basically a change in the packaging, a change in the technology. A welcome change,“ Topf described. „Essentially, it remains a fiduciary currency of a nation or entity. The value of the currency is determined by the sovereign or group of sovereigns behind it.

Man agreed, although he described himself as more optimistic than Topf when it comes to CDBs:

„I think CDBEs are definitely good news in the sense of facilitating means of payment and repackaging them in a way that is more appropriate for the global economy.

„The development phase of the Yuan Digital has been completed,“ says central bank official.

The Saga WMS token and a global linkage

Saga operates a stablecoin, SGA, which was launched in December and is linked to special drawing rights. The SDR is a basket of currencies that the International Monetary Fund bases on a variable proportion of dollars, euros, yuan, yen and pounds. However, Man explained, „we are slowly moving away from the SDR by reducing the reserve ratio.

The decline in reserves would seem to put SGA on the path to replicating a fiat currency, but Man says the difference is that SGA’s reserve changes according to a mechanism that anyone can access: „When we look at CBDCs, I don’t know of any central bank that tries to implement a monetary policy based on a consensus mechanism.

„The confidence that we are achieving should not depend on us being better people than others. It should be systematic,“ Man continued. Topf, who spent 13 years at Israel’s central bank, also identified transparency and consensus as the killer application of the EMS:

„We sought a monetary model that was more advanced and objective than any central bank could produce. […] Some people look at crypto-currencies and see a technological innovation. We started working on this looking for a monetary innovation.“